Tax Code Changes for the 70 Plus Crowd!
by TaxDoctor on February 20, 2020 at 1:10 pm
A lot of things have changed in the last two years when it comes to tax rules. Every year, the IRS tweaks things a little. Since Trump has been in office, there have been some substantial changes to things that people have been use to for many years. Old habits die hard, so some of these new tax rules will probably slip by many for some years to come, until they realize they’ve lost an opportunity or pay a penalty. It’s not everybody’s favorite topic, right? That being said, there are a lot of good things in these changes. One good thing is that the IRS has finally stopped unfairly not allowing people to put money away for their retirement […]
The First Major Deadline of the Tax Season is Looming!
by TaxDoctor on February 14, 2020 at 4:00 pm
Many people think of the IRS filing deadline as April 15th. Simple right? In fact, there are deadlines all year long, something different every month. IRS Publication 509 has the outlines, if you want a quick search to look something up. If you are in certain industries, you likely know you have different deadlines; like farmers and fisherman who have not paid their estimated tax by January 15th must file by March 2nd (yes, just two weeks away) . The deadlines for pass-through business entities is March 16th. If you think about it, that deadline makes sense, as an S Corporation or a Partnership return is prepared so that a K-1 from the entity can be issued to the owners, […]
The Light Bulb Moment
by TaxDoctor on February 6, 2020 at 5:00 pm
Ever had a “light bulb” moment? I have been driving for many years. I’ve driven at least a million miles and I own a few cars (I collect certain types), and when driving my spouse’s car or one from the collection that I haven’t driven in a while, inevitably it’s time to gas up. I pull up to a pump and get out and realize that the gas cap is on the other side, back up the car, turn it around with a sigh and fill it up. Then this year the “light bulb” moment. While trying to figure out the dashboard “iPhone” charger fuse location, I happened to be looking at the diagram of the fuel gauge in the manua […]
They Zig, We Zag.
by TaxDoctor on January 31, 2020 at 4:16 pm
People who are worried about the 10 year rule, requiring beneficiaries of inherited IRAs to withdraw the entire balance within 10 years, can double that time with a CRT beneficiary in front of inheritors. What if you really have a big IRA and the 10 year rule just isn’t enough of a stretch to help your beneficiary stay out of the top tax bracket? Or any other reason you care about reducing the negative tax impact from the 10-year rule? You could use other remaining tax rules to your benefit by setting up a charitable trust. A charitable trust allows the retirement assets to continue growing tax-deferred, even once the assets are distributed from the retirement account into the CRT. […]
Sometimes It’s the Little Things That Come Back to Bite You
by TaxDoctor on January 24, 2020 at 1:16 pm
Since they are only done once a year, the little things regarding the tax code are often overlooked or forgotten. In some cases, this can lead to unintended penalties and fines. As a sole proprietor, it’s not enough to just include a Schedule C on your personal tax return. Before January 31st, you must remember to complete and send 1099-MISC forms to anyone you paid more than $650 to last year, and transmit copies of those forms to an IRS office. But where do you get 1099-MISC forms and what information has to go on them? Among other things, you need to include the payee’s Social Security number and address. That’s the first problem. For many people that you might hire, such as a […]
Taxes Are Due In